Crane Q4 profit rises on gains, abandons asbestos deal
SAN FRANCISCO (CBS.MW) – Crane Co., an industrial products maker, late Monday reported a higher fourth-quarter profit, helped by a one-time gain resulting from the termination of its planned asbestos settlement.
Crane Q4 profit rises on gains, abandons asbestos deal
The Stamford, Conn.-based company posted a fourth-quarter profit of $46.4 million, or 78 cents per share, higher than the year-ago profit of $33.7 million, or 56 cents a share. Net income in the latest quarter was boosted by gains totaling $15.6 million.
Sales rose 13 percent to $57.3 million. But weaker profit margins undercut rising sales as raw material costs and product development expenses rose.
Crane (CR: news, chart, profile) said it abandoned the asbestos deal Monday after the U.S. Court of Appeals for the Third Circuit reversed a prior court order approving the deal.
The company had announced its asbestos settlement last October. It called for setting up $280 million trust to pay asbestos victims as well as resolving all present and future claims. Crane said the Dec. 2 appeals court decision “constitutes a material change in case law.”
As a result, Crane increased its 2005 financial guidance because it expects to pay a lower interest expense. The company estimates earnings per share around $2.10 to $2.25, up from the prior forecast of $2.05 to $2.15.
Shares of Crane closed Monday ahead of its earnings report at $26.34, down 13 cents.